The Hindu Business Line : UTI MF to make fresh bid to kick-start pact with SSgA

UTI Mutual Fund will soon mount a fresh bid to kick-start its tie-up with State Street Global Advisors (SSgA), which has not made any progress in the past one year.

UTI MF will present its case before the regulators on the matter, especially with regard to securing clearance for the two schemes that have been mooted in association with SSgA.

The UTI MF-SSgA combine, which came into being in May last year, had worked out a couple of proposals, beginning with an index fund based on the Dow Jones Global Titans 50 index.

The country's No. 1 asset manager, said Mr D.S.R. Murthy, ED, hopes to get the proposals endorsed by the regulatory agencies in due course. The regulators, it is hoped, will grant their consent on the basis of the merits of the two products.

"We feel there is scope for passively-managed funds that provide investors a chance to buy internationally-known equities," he said, hoping that investors will like index-based strategies. Mr Murthy was talking to newspersons after launching the newly-proposed UTI Dividend Yield Fund in the local market.

UTI MF, in the global market, is seeking to come out with new initiatives. While offshore offices have been geared up for action, it hopes to get into marketing agreements with some of the world majors. In the domestic market, UTI MF is banking on investors' preference for equity products with regard to the Dividend Yield Fund.

UTI PMS moves ahead:

`Axel', the portfolio management service that was launched recently, is on its way to attain critical mass in terms of assets under management, although UTI MF sees more scope for its development.

"There is considerable room for growth", Mr Murthy said, adding the service has lately found a number of takers, each of whom has put in at least Rs 25 lakh — the minimum amount that is required to be invested. Axel, which offers a range of investment solutions to clients, is positioned in a manner that takes into consideration the goals and risk profiles of individual clients.

UTI MF's discretionary PMS was launched under two sub-brands, Axel FF and Axel VF. Under the former, fixed management fees were to be charged, while under the latter, fees were to be charged on fixed and variable bases.

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